After a disappointing 2019 in both regions, Wood Mackenzie forecasts US demand for consumer flexible packaging to increase by up to 10 per cent this year, compared to three per cent in 2019. In Europe, demand growth fell back to under 1.5% in 2019 but could climb to above five per cent this year.

Rob Gilfillan, Wood Mackenzie Head of Fibres, Films and Flexible Packaging, said: “New restrictions on daily life have had a huge impact on how we consume FMCG goods. The speed at which governments have introduced these measures is unprecedented … This rapid change has caused a wave of panic buying and stockpiling across Europe and North America.”

Gilfillan added that the limits regarding how and where we consume food has forced huge volumes of consumption away from restaurants and cafes, and towards the retail sector instead.

While end-use sectors for food have seen an increase in demand, the healthcare sector has also been heavily impacted. According to Wood Mackenzie’s analysis, demand for flexible packaging in medical supplies has seen a growth of over 10 per cent since the start of March.

Gilfillan added: “This increase in demand has moved through the supply chain, with converters pre-ordering large volumes of plastic film because they are anticipating a shortage in flexible packaging raw materials. [BOPET] film producers in both Europe and the US, for example, are reporting an uplift in bulk orders.”

The key issue of packaging sustainability, a major recent talking point, has taken a back seat but will come back to prominence afterwards. It is worth noting, Gilfillan concluded, that if crude oil prices remain low, the use of virgin plastic will be a very attractive proposition compared to post-consumer-recycled content.